Union Cabinet

If you still have old currency then submit it in the banks or give it to someone who can deposit the money because it will be of no use after 31st December and the Government has taken one more step on Wednesday in this direction by approving promulgation of an ordinance to impose a penalty and jail term for possession of the scrapped Rs 500 and Rs 1000 notes after 31st December.

The cabinet headed by the Prime Minister Narendra Modi took this decision which also approved an ordinance to amend the RBI Act to extinguish the liability of the government and the Central Bank on the demonetized high denomination notes to prevent future litigation.

The official sources have confirmed that the ordinance has been cleared but did not say anything if the penalty provisions would apply for holding the junked currency after the 50 day window to deposit of old currency notes at specified branches of the Reserve Bank of India after submitting declaration form is open.

Meanwhile the ordinance on denitrification of Rs 500 and Rs 1000 notes has been sent to President Pranab Mukherjee for his assent.

The penalty will be levied if someone found holding old currency notes of Rs 500 and Rs 1000 after the deadline and it will not just include the financial fine but also a jail term of up-to 4 years in certain cases.

Still the Government will notify after 31st December which will specify cases eligible to get the banned notes submitted in specified branches of Reserve Bank of India.